A bond with 10 years to maturity and a coupon rate of 11% has a par,...
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A bond with 10 years to maturity and a coupon rate of 11% has a par, or face, value of $20,000. Interest is paid annually. If you require a return of 17% on this bond, what is the price of the bond? The value of the bond is $ (Round to the nearest cent.) A bond with 10 years to maturity and a coupon rate of 11% has a par, or face, value of $20,000. Interest is paid annually. If you require a return of 17% on this bond, what is the price of the bond? The value of the bond is $ (Round to the nearest cent.)
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To calculate the price of the bond we need to determine the present value of the bonds future cash f... View the full answer
Related Book For
Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
Posted Date:
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